Appendix 4 Annual Equal Pay Audit 1 April 2013 to 31 March 2014 A fresh approach to people, homes and communities
INTRODUCTION Berneslai Homes is committed to and supports the principle of equal pay for all its employees. Equal pay gives the right for men and women to be paid the same for the same, or equivalent, work. The law on equal pay is principally contained in the Equality Act 2010 (formerly under the Equal Pay Act 190 and its subsequent amendments). An employer can only pay a male employee more than a female employee for doing equal work, or vice versa, if there is a genuine and material reason for doing so that is not related to sex. The law specifically deals with the pay of female employees compared to male employees, or vice versa and not comparisons between people of the same sex. Berneslai Homes introduced a new job evaluation scheme in April 2008. The scheme is designed to incorporate the principle of equal pay for work of equal value and free from gender bias and discrimination on the grounds of race, sexual orientation, religion and belief, age and disability. Since that time, all jobs (and changes of job role) have been and are evaluated under this scheme. The Equality Act 2010 now requires public bodies with 150 or more employees to publish information about gender pay differentials. Berneslai Homes, in 2009, committed themselves to undertake Equal Pay Audits on an annual basis to be carried out each September. This was in accordance with recommendations contained within the Equal Pay Code of Practice. The Equal Pay Audit incorporates all employees and not just those employees on NJC Terms and Conditions (up to Spinal Point 49). The purpose of the Equal Pay Audit is to identify if there is a gap between male and female pay. A gender pay gap is not necessarily unlawful as long as there is an objectively justifiable reason not related to gender for the pay difference. - 1 -
CURRENT POSITION An analysis has been undertaken on employees by salary using age, gender and disability, using information from 31st March 2013 to 31st March 2014. All comparisons have been based on information current between 31st March 2013 and at 31st March 2014, and comparisons have been made with 2012-2013. The equal pay audit will compare salaries only, not grading structures. Berneslai Homes Median Pay The median is found, as for several previous audits, within the salary range 20,001 to 25,000. This is for all staff, both part time and full time, at the actual median salary of 22,430. National and Local Pay Statistics According to the Office of National Statistics (ONS) 2013 Annual Survey of Hours and Earnings (ASHE), for the tax year ending 5 April 2013 median gross annual earnings for full-time employees on adult rates who had been in the same job for at least 12 months (including those whose pay was affected by absence) were 2,000. This was an increase of 2.1% compared with 26,500 in the year ending 5 April 2012. It should be noted that this figure only relates to those working full time, so cannot be effectively compared with Berneslai Homes median pay figure. Below are some figures reflecting the local, regional and national picture for median gross annual earnings for full time employees by gender. Barnsley Yorkshire and UK the Humber All 24,949 24,954 2,01 Office of National Statistics (ONS) 2013 Annual Survey of Hours and Earnings (ASHE) Gender pay differences The earnings of women relative to men vary according to whether an employee works full-time or part-time. In 2013 (Quarter 2), the Labour Force Survey (LFS) indicated that the UK workforce consisted of approximately 12.8 million men (51% of the employee workforce) and 12.5 million women (49% of the workforce). In Berneslai Homes our workforce is composed of 52% men and 48% women, very similar to the national workforce. The LFS also shows that there is a difference in the proportion of male and female employees who work full- and part-time. Below is a comparison of the percentage of men and women working part time, both nationally and in Berneslai Homes. UK figures Berneslai Homes figures Men working full time 88% 9.6% Men working part time 12% 2.4% Women working full time 58% 59% Women working part time 42% 41% - 2 -
Both nationally and in Berneslai Homes, this highlights the fact that more women work part-time than men. Nationally, women are more likely to receive lower hourly rates of pay because they work part time but this is not true for Berneslai Homes employees who receive the same hourly rate of pay regardless of their working pattern. Nationally these figures are the same as last year, but in Berneslai Homes, 3% more women and 0.5% more men work part time than last year. Gender Pay Gap Nationally, the Gender Pay Gap based on the mean for all employees (excluding part time), has increased (in favour of men) to 19.1%, up from 18.6% in 2012. This figure represents the difference between men s and women s hourly earnings as a percentage of men s earnings. Interestingly, in Berneslai Homes, the pay gap is the opposite, favouring women. The figures are as follows, based solely on the number of employees who work full time, and on their mean gross annual earnings, using the ASHE methodology. The median figures are also included, and these again indicate higher median pay for women. Mean gross annual earnings Median gross annual earnings Full time men (284) 25,325 23,496 Full time women (126) 25,834 24,892 Public Sector and Private Sector Pay The national picture shows UK employees in the public sector earning significantly more than equivalent private sector employees (that is full time employees). The median gross annual pay of full-time employees in the public sector was 29,515 in 2013, up 2.0 per cent from 29,380 in 2012. For the private sector the comparable figure was 25,95, up 2.2 per cent from 24,908 in 2012. However, ASHE points out the following: The public and private sector have workforces which are composed quite differently. Consequently, differences in gross earnings do not reveal differences in rates of pay for comparable jobs. For example, many of the lowest paid occupations, such as bar and restaurant staff, hairdressers, elementary sales occupations and cashiers exist primarily in the private sector, while there are a larger proportion of graduate level and professional occupations in the public sector. SALARY PROFILE: GENERAL ANALYSIS During 2013-2014, our workforce increased to 501, working in 506 posts, as some employees have 2 jobs with different salaries. Staff turnover changed; 38 employees left and we recruited 40 new starters. Some of the changes in numbers on particular salaries relate to: Employees moving onto the next pay point within their grade Recruitment of new employees who are on the first pay point within the grade when the previous employee was on the top pay point - 3 -
Recruitment to new positions Re-grading of posts following job evaluation, due to changed responsibilities Salary Employees 2013 Employees 2014 Under 5000 2 1 5,000-10,000 28 31 10,001-15,000 56 56 15,001-20,000 4 66 20,001-25,000 22 240 25,001-30,000 29 30 30,001-35,000 53 48 35,001-40,000 12 15 40,001-45,000 11 10 45,001-50,000 0 0 50,001-55,000 3 3 55,001-60,000 1 1 Over 65,000 5 5 Fig 1 SALARY PROFILE: GENDER ANALYSIS The gender split within the company is 58% males, 42% females, a very slight change from 2012-13. Nationally, last year the UK employee workforce was made up of 51% of males and 49% of females. Fig 2 At Figure 2 above are the salary profiles for 2013-14 in graph format, showing numbers of males and females on salary bandings, and figure 3 below is the graph for 2012-13. - 4 -
Figure 2 shows that all employees who earn under 5,000 are female (1 person) and of those earning below 10,000, 94% are female. Of all those earning 20,000 and under, 9% are female, a slight drop from 81% in the previous year. It should be noted that of those 9% of women, 63% work part time. Of the 21% of men earning below 20,000, only 18% work part time. So although it appears many more women are on lower salaries, one of the main reasons is that many more women work part time. Together with the analysis above reflecting that full time female employees receive higher mean and median annual salaries than men, it is encouraging to note that Berneslai Homes gender pay differences are quite fairly balanced and do not primarily favour male employees. Salary Profile 2012-2013 Over 65,000 55,001-60,000 50,001-55,000 45,001-50,000 40,001-45,000 35,001-40,000 30,001-35,000 25,001-30,000 20,001-25,000 15,001-20,000 10,001-15,000 5000-10,000 Under 5000 Male Female 0% 20% 40% 60% 80% 100% Fig 3-5 -
Fig 4 Shown in Figure 4 above, it can be seen that 82% of employees earning between 20,001-25,000 are males, unchanged from last year. This is the salary band in which craft operatives fall. Since last year, the median for males, including those working full time and part time, has shown a very slight decrease to 23,188 down from 23,262 last year. This could reflect the slight increase in men working part time. For females, including those working part time, of which we have a significant percentage, there has been an increase, with the median salary of 1,980, up from 1,802 last year. This year, 16% of the workforce earn 30,001 and above, slightly down from 1% last year. Of these, just over 9% are male compared to just under % female, a slight adjustment in favour of females since last year. Of those earning 30,001 and above, 42% are female and 58% are male, which has increased in favour of females since last year, when the ratio was 41% female and 59% male. This reversed the trend from last year, when the ratio had increased in favour of males. - 6 -
SALARY PROFILE: AGE ANALYSIS Figure 5 below shows salaries by age of all employees including Grades 1-9, Craft Operatives and those on Hay Grades for 2013-2014 and Figure 6 shows this for 2012 2013 for comparison. The median age range of the workforce falls within the age band 46 50, at the actual age of 4 years. Fig 5 65% of the workforce are aged 41 years and above, down form 6% last year, with 6.5% being aged 24 years and under, up very slightly from 6% last year. This continues to demonstrate our ageing workforce. Since last year, the percentage of employees within the age band 51-55 years has fallen from 20% down to 1.8%). Of those employees aged 60 years and over, (6% of workers) 31% earn 15,000 or under; this is down significantly from 42% last year. This reflects a trend over the last 3 years, when we have had leavers in older age groups, which may be a contributing factor. - -
Salary Profile 2012-2013 Under 5000 5000-10,000 10,001-15,000 15,001-20,000 20,001-25,000 25,001-30,000 30,001-35,000 35,001-40,000 40,001-45,000 Over 45,000 60+ 1 3 10 12 56-60 6 10 8 28 3 2 2 3 51-55 2 8 19 42 4 3 2 46-50 1 9 38 14 1 4 3 41-45 3 8 4 34 3 9 3 21 36-40 2 6 5 1 3 1 31-35 1 18 5 8 1 25-30 4 2 11 38 1 16-24 2 12 9 12 Fig. 6 As last year, almost all staff below 30 years (1%) are within salary bands up to 25,000 as are a good percentage (34%) of staff aged 31 to 60 years (80% of employees), reflecting where the median salary falls. For salaries 35,001 and above, all staff are over 30 years old, as last year. In the last 2 years, we have seen a change from employees aged 55 to 64 years being over represented in the lower pay band around the 15,000 region, particularly in clerical and admin posts, showing a need for succession planning in this area. This year, for salaries of 10,001 to 15,000, the percentages are: 16-29 years 3% 30-39 years 2% 40-49 years 3% 50-59 years 4% 60 and above 1% showing a broader spread of age ranges across this salary band and a further broadening across the salary ranges since last year. However, Berneslai Homes has had long standing high retention levels, which has increased again this year, giving little scope for much movement within the pay profiles. Although we have been targeting younger people for office apprenticeships and craft apprenticeships traditionally attract younger applicants, it will be many years before this would have a significant impact. Greater changes are likely to come as the majority of staff within the 51 to 55 years range (20%) retire, although this is some way in the future, and it is less predictable at what age staff will leave, as there is no default retirement age. The right to flexibly retire may have a gradual impact. - 8 -
Disabled staff For disabled staff, who make up 5% of the workforce, we have found that they continue to be spread fairly evenly across all but one of our salary ranges, with the largest number in the 20,001 to 25,000 age band, where our median annual salary falls, as for all staff. Their salaries range from 8,499 (part-time) to 66,546. Of our disabled staff, 55% are female and 45% are male, and 4% are over 50 years. - 9 -